Hello BP, first time investment owner and I have some questions.
Does anyone have experience with Navy Federal Rental loans/ Underwriting. Every time I give them what they want they want additional information. I’ve given bank statements and paychecks 2 months prior to applying for loan and bank statements since being pre approved. I’m also putting down 25% for a duplex which I was not informed id have todo in the beginning. They also asked for a rental agreement with tenants without even having the property in my possession. Anyone going through similar issues?
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
3y
I'm very familiar with them. Navy Federal is super-aggressive in their pricing for conventional and VA loans. They get their money from depositors and "portfolio", meaning hold the loans without selling them where lenders like us get our money from Wall Street. We are tied to the 10 year treasury, but Navy Federal basically has flexibility. That being said, their lenders tend to be a bit less "seasoned" than a good commercial lender. The process might be more chaotic and they may not have the expertise. I was not aware that they were aggressively pursuing real estate investor deals, but I suppose most of what they would be chasing would likely be Fannie/Freddie conforming. If you're looking for an investment loan through a bank and you go into a branch, the loan officer you are going to get is likely not all that seasoned and will be simply an order taker. Navy Federal, as a credit union, is going to be even less experienced in complex lending than that. They'll likely be all over the place because they likely have little to no experience with loans other than car loans, HELOCs, and basic VA and Conforming Loans. Real Estate Investment and Commercial Loans are going to likely be out of their element.
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
3y
When you started your preapproval it was in the past. Lenders want all the current bank statements and paystubs for a conventional loan, that's normal and could have been explained. Yes the lease and deposit at closing also should have been explained - lender product requirement is for a ready to rent property at close not a rehab, that is a different loan with higher pricing. They scrutinize every deposit and any moving of funds in the bank statements. You must trail and prove where the money sat/came from/why during prior 60 days before close, also normal.
I agree with Doug that the loan officer in the desk there is going to be new and maybe also has to open the vault (not literally) but has branch duties as well as processing your deal. You chose Navy for lower rate, but cheaper doesn't mean easier.